When Sprint International, the US-based ISP services provider; decided to set up an office in Mumbai last year; the company considered a number of options, but finally opted for a ready-to-use workspace at DBS, Fort.

Suresh Narsimhan, Network Engineer – Operations, Sprint International, says, “One of the basic reasons why we preferred the DBS Business Centre facility over leasing or purchasing premises was that the office had to accommodate just two people - me and my colleague. Most of our clients are based out of India so it wasn’t necessary to spend or invest on an entire office and furnish it at the initial stage.

“We also saved a lot on overheads; there was no need for a receptionist or support staff, because the center provides all these services.”

On the other hand, Toronto Dominion Bank, another DBS facility user; chose it because they were at the opposite end of the business cycle. As a representative of the bank explains, they were in the process of winding up their operations in India, when their office lease expired. In those circumstances, it just didn’t make sense to renew the lease or go hunting for office space at a new location.

At the same time, they needed a workspace that was completely operational , with access to services like videoconferencing, which is why a business center was the ideal choice.

These are some of the reasons why the instant office concept has been a preferred entry-level option for multinationals testing the waters in India. There is a sustained demand for the concept even today only because it has evolved over the years to provide a full range of business services, which is crucial for a one-man or two-man operation.

Also, working out of five star hotels is only practical up to a certain stage. Beyond that point, once operations take off, a professional set-up is required. Taking furnished office premises on a short-term lease is usually deferred because it entails overheads in the form of a security deposit and staff.

Today, the concept has evolved to the extent that one can also opt for a virtual office and flaunt branches in most major Indian metros without ever leaving home. A receptionist at your office number will respond to calls, pass on messages and couriers. Sounds great, doesn’t it?

Ofcourse, the convenience does come with a heftier price tag. The charges for business center facilities vary, depending on the provider, location and the services required such as secretarial staff; per square foot usage is not the only criteria.

Items like photocopying and refreshments are billed separately. There is often also a membership fee.

While the charges are more expensive than what you would incur by leasing your own premises, the concept still makes sense because the initial investment is kept to a minimum. The actual space required is also reduce to a great extent, because there is no need to provide workstations for support staff, a pantry, fax machine, etc.

Also, there is no time delay, you can pay the amount, plug in your laptop and start functioning right away.

Reena Bhanushali, Center-in-Charge, DBS, Fort, points out that major players from almost every industry have used ready-to-use offices during the initial phase. “A multinational establishing a presence in a new city needs a plush office at a posh location –even brands like Coke and Baazee started off with us,” she says.

In comparison, Indian start-ups tend to graduate from the small office home office (SOHO) set-up to business centers much more slowly.

Ajaye Ruia, Director, Allstate Services, feels that business centers are considered only when their business reaches a critical mass, when they have to interact with prominent clients and need a high-profile corporate address. However multinationals opt for business centers at a much earlier stage.

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